GAO's Reports on the FHwA Disadvantaged Business Enterprise and Outdoor Advertising Control Programs

GAO discussed the Federal Highway Administration's (FHwA) Disadvantaged Business Enterprise Program and Outdoor Advertising Control Program. GAO found that, since FHwA promoted increased use of disadvantaged businesses in federal-aid highway work, the amounts of contract funds going to minority businesses had steadily increased. Federal and state records indicated that capabilities existed among certified minority businesses to perform 10 percent of highway work needed, but their ability was limited by time, geographics, and competitive factors. Training and assistance are available in varying degrees to minority businesses. GAO also found that the problems it identified had little adverse affect on the businesses' overall ability to obtain highway construction work. In its review of the Outdoor Advertising Program, GAO found that, although about 587,000 signs had been removed under the program, about 172,000 nonconforming and illegal signs remained along the nation's highways, and little federal funding was available for removal compensation. FHwA overall oversight of the state sign-control program has declined as federal funding decreased and, in lieu of monetary compensation, many localities allowed sign owners to retain their signs. Most states also indicated that these sign owners were not allowed to control vegetation or cut trees near signs along interstate or primary highways; however, 24 states reported instances of illegal cutting of vegetation or trees.